THE JOBLESS RATE slipped to a two-month low in February, as more Filipinos joined the labor force ahead of the summer season and midterm elections, the statistics agency said on Tuesday. Read the full story.
PHILIPPINE AIRLINES (PAL), operated by PAL Holdings, Inc., expects passenger volume to grow by up to 20% this year.
“Between 10% and 20% increase,” Philippine Airlines President and Chief Operating Officer Stanley K. Ng told reporters on Monday.
“We have recovered some of our grounded aircraft,” he added.
For 2024, PAL Holdings recorded a total comprehensive net income of P10.01 billion, down 51% from P20.48 billion in 2023, due to lower revenues during the period.
In 2024, PAL Holdings posted P178.01 billion in revenue, a 0.62% decrease from P179.12 billion in the previous year.
Despite carrying 15 million passengers in 2024, the flag carrier said the revenue decline was primarily due to a lower load factor of 79.1%, compared to 80.8% in 2023.
This year, PAL has launched new routes and expanded existing services.
The airline is set to begin nonstop Da Nang–Manila flights by July and increase its Manila–Hanoi–Manila service to daily flights as part of its Vietnam expansion.
PAL’s expected passenger growth this year is also attributed to the utilization of its restored aircraft, Mr. Ng said.
“After the pandemic, we were down to 60-plus planes in the air. Now we’re back to 79,” he added.
In 2024, PAL announced plans to acquire at least 22 aircraft, to be delivered between 2025 and 2029.
Mr. Ng said the company hopes to receive the first delivery by yearend.
The new aircraft include nine A350-1000s and 13 A321neo (New Engine Option) jets, intended to serve the airline’s nonstop flights to North America and other overseas destinations, as well as regional routes in Asia and Australia.
Meanwhile, PAL is also planning to resume its Manila–Sapporo service, Mr. Ng said, although supply chain issues remain a constraint.
“[We are looking at] Sapporo, but there’s a challenge with the engine situation — the supply chain,” he said.
At the local bourse on Tuesday, shares in the company closed unchanged at P4.50 apiece. — Ashley Erika O. Jose
TECH STARTUP Umpisa, Inc. has teamed up with US-based test automation platform Testsigma to help businesses adopt artificial intelligence (AI)-driven software testing in the Philippines.
“With the growing complexity of modern applications, software teams need testing solutions that are not only fast and reliable but also intelligent and adaptable,” Pamela Isabelle Z. Belen, chief executive officer at Umpisa, said in a statement.
Under the deal, Umpisa will integrate Testsigma’s low-code, AI-driven platform, enabling software teams to create automated tests using plain English, Umpisa said.
The codeless test creation and AI-powered maintenance is expected to reduce automation costs by as much as 70%.
The partnership also seeks to address challenges raised by businesses in maintaining speed and accuracy during rapid release cycles.
“This collaboration is about enabling software teams to focus on delivering quality without being held back by traditional testing processes,” Ms. Belen said.
San Francisco-based Testsigma specializes in cloud-based infrastructure for software testing across web, mobile and application programming interface and sales force applications.
This lets teams easily run tests at any time and integrate seamlessly with DevOps workflows.
Testsigma is used by global companies like Cisco, Samsung, Bosch, Oscar Health and Nagra and is backed by investors including MassMutual, Accel, Strive and Bold Cap.
Only 22% of Philippine companies said they are fully ready to capture AI’s potential, citing gaps in infrastructure readiness, data center network performance and cybersecurity, according to Cisco’s 2024 AI Readiness Index.
“By streamlining testing processes, the partnership seeks to help businesses improve efficiency, accuracy and scalability in their software development efforts,” Umpisa said.
Testsigma CEO Rukmangada Kandyala said its partnership with Umpisa is a major step into their global expansion to help firms adopt digital transformation practices.
“The Philippines is a dynamic technology market,” he said in the statement. “Umpisa’s strong local presence and technical expertise make them an ideal partner to bring our generative AI-powered codeless test automation solutions to the region.” — Beatriz Marie D. Cruz
Here’s a quick glance at how PSEi stocks fared on Tuesday, April 8, 2025.
PHILIPPINE SHARES rebounded on Tuesday, with the bellwether returning above the 6,000 mark, as investors bought bargains following the market’s slump and on expectations that the Bangko Sentral ng Pilipinas (BSP) to cut rates on Thursday.
The Philippine Stock Exchange index (PSEi) surged by 3.15% or 183.49 points to close at 6,006.34, while the broader all shares index rose by 2.46% or 86.03 points to end at 3,582.80.
The stock market is closed on April 9 (Wednesday) for a holiday in commemoration of the Day of Valor (Araw ng Kagitingan).
“The local market bounced back as investors hunted for bargains following three straight days of decline,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Hopes of a rate cut by the Bangko Sentral ng Pilipinas in their upcoming meeting this week helped in the market’s rise,” he added.
A BusinessWorld poll last week showed that all 17 analysts surveyed expect the Monetary Board to slash its target reverse repurchase rate by 25 basis points to 5.5% from the current 5.75% at its policy meeting on April 10 (Thursday).
“Philippine shares made a furious return after falling to its lowest since October 2022, as many countries came to the negotiating table to resolve the tariff war ignited by US President Donald J. Trump,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
World markets won a reprieve on Tuesday after three days of heavy selling that wiped trillions of dollars off the value of shares, but the mood was cautious with a focus on whether Washington might negotiate on some of its aggressive tariffs, Reuters reported.
Asia stocks bounced off 1-1/2 year lows, European shares opened broadly higher and US stock futures pointed to a positive open for Wall Street where shares fell to their lowest in over a year on Monday, before steadying.
All sectoral indices closed in the green on Tuesday. Services increased by 5.51% or 100.14 points to 1,916.38; financials surged by 4.04% or 92.10 points to 2,370.54; industrials jumped by 3.17% or 259.56 points to 8,438.05; mining and oil went up by 1.80% or 154.18 points to 8,714.54; holding firms rose by 1.10% or 53.51 points to 4,890.07; and property climbed by 0.22% or 4.94 points to 2,158.07.
“Century Pacific Food, Inc. was the top index gainer for the day, surging 9.06% to P34.90. DMCI Holdings, Inc. was the worst index performer, dropping 4.55% to P10.50,” Mr. Tantiangco said.
Value turnover went down to P6.42 billion on Tuesday with 1.22 billion shares exchanged from the P13.23 billion with 1.36 billion issues traded on Monday.
Advancers beat decliners, 127 versus 75, while 60 names closed unchanged.
Net foreign selling went down to P427.75 million on Tuesday from P3.24 billion on Monday. — R.M.D. Ochave with Reuters
THE PESO recovered against the dollar on Tuesday on hopes for negotiations on the Trump administration’s reciprocal tariffs.
The local unit closed at P57.31 per dollar on Tuesday, rising by 12 centavos from its P57.43 finish on Monday, Bankers Association of the Philippines data showed.
The peso opened Tuesday’s trading stronger at P57.35 against the dollar. It traded better than Monday’s close the whole session as its worst showing was at just P57.38, while its intraday best was at P57.145 versus the greenback.
Dollars exchanged went down to $1.97 billion on Tuesday from $2.17 billion on Monday.
The peso rose amid broad dollar weakness amid prospects of tariff talks between the United States and its trading partners, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The US dollar fell on Tuesday on hopes that US President Donald J. Trump will enter negotiations over his sweeping tariffs that have roiled markets for three days, Reuters reported.
The dollar was last down 0.4% against the Japanese yen, traditionally seen as a safe haven at times of market stress, at 147.28 yen to the dollar. The US currency touched a six-month low against the yen on Friday.
Meanwhile, the US dollar index, which measures the currency against six peers, was 0.3% lower at 103.11.
It has fallen around 0.7% since Mr. Trump announced the tariffs on April 2, as investors have weighed up the hit to the US economy against the currency’s typical role as a shield from market slumps.
Investors on Tuesday gleaned some positive signs from the Trump administration about tariff talks. Treasury Secretary Scott Bessent said on Monday he hoped negotiations would bring levies down.
Mr. Trump said Japan was sending a team to start negotiations, helping Japanese equities rally sharply overnight.
However, China dug in and criticized what it called “blackmail” from the United States over Mr. Trump’s threat of additional 50% tariffs in response to China’s initial retaliation. Meanwhile, the European Union floated 25% counter-tariffs on US goods.
“Locally, unemployment data came out lower, strengthening the peso. In the afternoon, there was some demand for the dollar due to uncertainties with tariffs and positioning ahead of US inflation data,” a trader said in a phone interview.
Preliminary data from the Philippine Statistics Authority’s Labor Force Survey showed that the jobless rate was at 3.8% in February, slightly higher than 3.5% a year ago but lower than 4.3% in January.
For Thursday, the trader expects the peso to move between P57.10 and P57.50 per dollar, while Mr. Ricafort said it could range from P57.20 to P57.40. — Aaron Michael C. Sy with Reuters
By Kyle Aristophere T. Atienza, Reporter
FARMERS said the Philippines could be targeted by exporters of agriculture goods if their access to other markets is disrupted by the US tariffs as well as any measures taken in retaliation.
Raul Q. Montemayor of the Federation of Free Farmers said via Viber that the Philippines should be ready to impose anti-dumping duties if the Philippines is flooded by surplus farm goods.
To do so successfully, “We need to set up real-time import monitoring,” he said.
He noted that under World Trade Organization (WTO) rules, a member country can impose additional tariffs on imports if the landed price falls below the price in the source country.
According to the WTO, dumping results when the export price is less than the price charged in the home market.
Mr. Montemayor said the Philippines can also undertake “safeguard” action in the event of a surge in imports that result in harm or potential harm to a local industry.
The US has imposed a 17% tariff on the exports originating in the Philippines.
The US trade deficit with the Philippines was $4.9 billion in 2024, up 21.8%.
One of the potential sources of dumped products is US producers locked out of China, animal feed industry officials said.
In 2024, the Philippines imported about two and a half times more agricultural products than it exported both to the US and the world, according to the Federation of Free Farmers.
The US market accounted for around 17% of total Philippine agricultural trade.
THE PHILIPPINES will need to lay the groundwork for receiving manufacturers exiting China by ensuring that the relocators have adequate supplier networks here, a retail industry official said.
Philippine Retailers Association President Roberto S. Claudio on Tuesday said that the tariffs imposed by US President Donald J. Trump will result in a shift in the production.
“I think the Philippines should be in a good position to take advantage of this mess or the confusion going,” he said on the Money Talks with Cathy Yang program on One News.
He said businesses should take advantage of movement out of China by improving supply and raw material availability.
He said the availability of steel, leather and textiles will be key to attracting manufacturing relocators.
“Some Chinese companies are starting to look at the Philippines and other Asian countries,” he added.
“For retailers, there’s another positive effect… because some goods from China destined for the US (may not end up being shipped there),” he said.
“Asia will be flooded with Chinese products that used to go to the US… the Philippines in particular can take advantage of all these products coming in,” he added.
Separately, the Philippine Chamber of Commerce and Industry (PCCI) said the 17% tariff imposed on the Philippines will ensure continued competitiveness for Philippine goods, though it is wary of the potential impact on some product categories.
“The US has yet to announce the exact coverage, but we remain vigilant as such tariffs typically target specific categories of goods such as food and agri products and electronics, which are our major exports,” the PCCI said in a statement on Tuesday.
The PCCI cited the risk, however, of actions taken by other countries in response to the US tariffs.
“Retaliatory measures can disrupt global supply chains, increase costs, and create uncertainty for businesses and consumers, bringing about a broad negative effect on economic growth. And more so for a remittance- and consumer-driven economy like ours,” it said.
“The ripple effect of having to absorb extra costs will be hardest on small businesses, particularly those in agriculture and food processing. We note, too, that our neighbors are already preparing to negotiate with the US to offer lower tariffs and better concession arrangements,” it added.
The Department of Trade and Industry on Monday said that it is open to lowering tariffs on US goods in response to the reciprocal tariff.
Trade Secretary Ma. Cristina A. Roque has yet to meet with her US counterparts.
PCCI Chairman George T. Barcelon said that the Philippines should consider lowering tariffs in consultation with the private sector. — Justine Irish D. Tabile
THE United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has maintained its Philippine economic growth forecast for this year, citing Southeast Asia’s sustained electronics boom.
Philippine gross domestic product (GDP) is expected to expand by 6.1% this year, ESCAP said in its Economic and Social Survey of Asia and the Pacific 2025 report, unchanged from its April report last year.
For 2026, the Philippines is expected to grow 6.3%, ESCAP said.
Both projections are within the government’s official 6%-8% target band for the 2025-2028 period.
ESCAP expects the Philippines to be the second-fastest growing economy in Southeast Asia this year, behind Vietnam (6.5%).
In 2026, the Philippines is expected to share the top spot for growth with Vietnam (6.3%).
Last year, growth was a weaker-than-expected 5.7%, as revised, exceeding the 5.5% in 2023. It fell short of the government’s revised 6-6.5% target.
“The (report) highlights how domestic and external pressures, including relatively high interest rates, persisting sovereign debt risks and rising trade tensions and fragmentation, are testing the economic resilience of the region,” Under-Secretary-General of the United Nations and ESCAP Executive Secretary Armida Salsiah Alisjahbana said in the report.
ESCAP also maintained its 4.7% projection for the region in 2025, and 4.6% next year.
“The strong economic performance of Southeast Asia is expected to continue, benefiting from ongoing manufacturing value chain diversification, a boom in global demand for electronics and semiconductors, and robust domestic consumption,” ESCAP said.
For the Asia-Pacific, ESCAP raised its forecast to 4.5% from 4.4% previously. It also expects the region to grow by 4.4% in 2026.
“The macroeconomic outlook for 2025 and 2026 is cautiously optimistic. The region’s GDP growth is likely to remain largely stable at lower inflation rates despite growing external pressures and continuing internal structural challenges,” it said.
However, this projection did not account for the sweeping tariffs imposed by US President Donald J. Trump on April 2.
Philippine goods will be charged a 17% tariff on entering the US.
ASEAN economies were assigned some of the highest tariffs, which will take effect on April 9. Cambodia is facing a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia (24%), and Brunei (24%).
“These are new projections which were completed a month ago, or more than that in fact, so the latest developments are not reflected here, simply because we simply don’t have the data at the moment to try and quantify the impact of latest developments, which are literally almost less than a week old only,” according to Hamza Malik, director of ESCAP’s Macroeconomic Policy and Financing for the Development Division.
In the report, ESCAP noted three risks to its baseline projections, including the intensification of the tariff hikes in the US and retaliation by other economies.
Other risks include the inflationary impact of trade policy shifts as well as rising economic uncertainty that “could keep global interest rates at a high level for a longer-than-expected period.”
In the same report, ESCAP also lowered its inflation forecast for the Philippines in 2025 to 3.3% from 3.8%. Its 2026 projection is 3.5%. — Aubrey Rose A. Inosante
GLOBAL DEMAND for minerals may slow if the US tariff regime leads to economic slowdowns, the Chamber of Mines of the Philippines (CoMP) said.
The 17% tariff imposed on Philippine exports to the US is “unlikely to have a direct significant impact” on the mining industry, which primarily exports mineral ore to Asian customers, CoMP Executive Director Ronald S. Recidoro said via Viber.
“However, indirect effects could occur if global trade tensions lead to economic slowdowns, affecting demand for minerals and metals,” he added.
A decline in mineral exports will in turn affect government revenue, he added.
Several minerals have been exempted from President Donald J. Trump’s fresh tariffs, including copper, zinc, rare earths, germanium, antimony, and uranium, according to S&P Global.
It said lithium, cobalt, tungsten, platinum group metals, and some forms of ferromanganese and coal are also exempt.
“The exemptions cover many refined and raw forms of the materials,” it said.
According to a White House fact sheet, reciprocal tariffs will not apply to semiconductors, pharmaceuticals, gold, and “certain minerals that are not available in the US.”
The Philippines is the biggest exporter of nickel ore concentrate, accounting for more than one-fourth of the global supply. Over 98% of Philippine exports go to China, with 1% shipped to Japan.
China has retaliated by placing several critical minerals on an export control list.
“We don’t see any impact at the moment, but it might at some point in the future if the commodity prices generally drop as a result of the tariffs,” Philippine Nickel Industry Association President Dante R. Bravo said in an e-mail.
Mr. Toledo of CoMP said for mining contractors, the impact may be minimal unless they rely heavily on imported equipment or materials subject to tariffs.
“Foreign corporations operating in the Philippines might face challenges if global economic conditions deteriorate, but the Philippine mining sector is not a primary target of Mr. Trump’s tariffs,” he added. — Kyle Aristophere T. Atienza
A HALAL-CERTIFYING organization accredited in Malaysia is expected to start operating in the Philippines this year, the Department of Trade and Industry (DTI) said.
The certifying organization is accredited with Jabatan Kemajuan Islam Malaysia (JAKIM).
“The certifying body will be an add-on to the list of halal certifying bodies and conform to global and international standards,” the DTI said in a statement on Tuesday.
The DTI and JAKIM representatives met on Monday.
“JAKIM, a leading authority in Halal certification, aims to collaborate with the Philippines to align with international standards and open new market opportunities for Filipino products in the global Halal industry,” the DTI said.
During the meeting, Trade Secretary Ma. Cristina A. Roque asked JAKIM to provide assistance in marketing Philippine products and to serve as a consolidator of such products.
“With public and private partnerships, we can expect to ensure the support needed for the halal sector to flourish,” she said.
“We take advantage of the support of President Ferdinand R. Marcos, Jr. for the halal industry. He has three years remaining (in his term), and we should take advantage of the support he is giving. That’s why this is a priority for us,” she added. — Justine Irish D. Tabile
MANUFACTURING OUTPUT sank to a three-month low in February due to slowing markets and reduced consumer spending, the Philippine Statistics Authority (PSA) reported on Tuesday.
Citing preliminary results from the Monthly Integrated Survey of Selected Industries, the PSA said factory production in February, as measured by the volume of production index (VoPI), declined 2.4% year on year in February, reversing the revised 3.2% from a year earlier and the revised 2.3% reported in January.
The February reading was the weakest since the 4.2% contraction in November.
Month on month, the manufacturing VoPI fell 4.6%, from a reading of 0.7% growth in January. Stripping out seasonal factors, output contracted 3.5%.
In the first two months, factory output declined 0.1%, well behind the year-earlier 1.4% average expansion.
The Philippine S&P Global Manufacturing Purchasing Managers’ Index (PMI) eased further to 51 in February from 52.3 in January, the weakest since the 50.9 reading in March 2024.
PMIs are a gauge of the volume of raw material orders, which will be turned into manufactured goods later. A PMI reading below 50 points to a contraction in future manufacturing activity, while expansions are signaled by PMIs above 50.
Leonardo A. Lanzona, Jr., an economics professor at the Ateneo de Manila, said decreased factory output during February lines up with the slowing markets, contributing to the decline in inflation in the same period.
Headline inflation eased in February to 2.1% from 2.9% in January, the lowest level in five months, driven by a deceleration in food prices.
“As aggregate demand decreased due to low incomes and productivity, the overall level of prices also slowed down,” Mr. Lanzona said via Messenger.
“While unemployment seems to be decreasing, these are all low-quality types of jobs found in the service and informal sectors.”
Mr. Lanzona also said that the Philippines became dependent on imports, particularly food imports, and debt to push consumption.
“The Trump tariff threats constitute now an opportunity to restructure our industries. We cannot rely anymore the existing global value chains since these will be restructured by US policies.”
US President Donald J. Trump announced baseline tariffs of 10% for all US trading partners last April 2. Starting April 9, Philippine goods will be subject to a 17% tariff.
The average capacity utilization rate was 75.9% in February, above the 74.4% from February 2024, but less than the revised January reading of 76%
Seventeen out of 22 industry categories posted average capacity utilization of at least 70%. — Pierce Oel A. Montalvo
